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22h ago

EU Commission Proposes €2 Trillion Budget to Strengthen Defense, Climate and Ukraine Support

Brussels now enters two years of talks after unveiling detailed spending with new financing measures that redefine EU strategic priorities.

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European Commission president Ursula von der Leyen delivers her speech during a statement on the preparation for the EU–China Summit, Tuesday, July 8, 2025 at the European Parliament in Strasbourg, eastern France. (AP Photo/Pascal Bastien)
The EU has to balance a growing list of priorities in the budget including bolstering security, while avoiding a new fight with farmers

Overview

  • The Commission proposed €1.816 trillion in 2025 prices, boosting the EU budget to 1.26 percent of gross national income.
  • It plans a €451 billion competitiveness fund covering clean tech, digital and biotech, increases defense and space spending fivefold to €131 billion and dedicates 35 percent of outlays to climate and environmental projects.
  • The proposal reserves €300 billion for the Common Agricultural Policy and sets aside €100 billion for Ukraine’s recovery under a dedicated facility.
  • To finance the expansion, the Commission flags new own-resource taxes on large companies, tobacco and electronic waste while accounting for €25–30 billion in annual pandemic-debt repayments.
  • Member states and MEPs have voiced divergent reactions, launching what is expected to be at least two years of complex negotiations before final adoption.